Why the U.S. Criticises Canada’s China Deal While Making Its Own

President Donald Trump welcomed Chinese President Xi Jinping and said the United States wants to expand the 2024 U.S.-China trade truce that was first agreed last year. Trump presented Xi as a “great leader” and hinted at deeper economic ties.

In January, Canada struck a modest agreement with China: 49,000 Chinese electric vehicles can enter Canada with a 6.1% tariff, down from the previous 100% rate. At the same time, China cut tariffs on Canadian canola, peas, lobsters and crabs.

U.S. officials openly criticised the Canadian deal. Transportation Secretary Sean Duffy warned that Canada would “regret” the EV decision, and Commerce Secretary Howard Lutnick accused Prime Minister Mark Carney of turning his back on the United States.

The United States imported more than $434 billion of Chinese goods in 2025, while Canada’s imports from China were about $90 billion.

Jia Wang, a senior fellow at the China Institute, and Mark Manger, a professor at the University of Toronto, both called the U.S. stance hypocritical. They said Washington tells partners one thing but does the opposite itself.

The clash shows how geopolitical priorities can outweigh consistent trade policy. While the U.S. seeks to keep allies aligned with its own economic goals, it also pursues its own commercial interests with China, creating a contradictory message for countries like Canada.

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